- The Federal Administrative Court confirmed that a deficient cash book can invalidate accounts and lead to denial of input VAT deductions for cash payments.
- Businesses paying subcontractors or other suppliers in cash must keep a complete, timely cash book with regular cash counts and book cash payments through the cash account.
- In the cited case, missing or improper cash records and an untraceable source of cash caused the taxpayer to lose a six-figure input VAT deduction.
- Invoices or receipts alone are not enough; the taxpayer must prove the payment flow and that it economically bore the tax under Art. 28 para. 3 MWSTG.
- The risk is especially high for cash-intensive businesses and where suppliers later cannot be verified due to liquidation or deregistration.
Source: primetax.ch
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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